THE 50/30/20 BUDGET RULE

THE 50/30/20 RULE IS A SIMPLE, FLEXIBLE BUDGETING METHOD THAT HELPS YOU MANAGE YOUR MONEY EFFICIENTLY. HERE’S HOW IT WORKS:

50% NEEDS: ALLOCATE 50% OF YOUR INCOME TO ESSENTIAL EXPENSES LIKE HOUSING, UTILITIES, GROCERIES, AND TRANSPORTATION. THESE ARE THINGS YOU NEED TO LIVE.

30% WANTS: SET ASIDE 30% FOR NON-ESSENTIAL PURCHASES LIKE DINING OUT ENTERTAINMENT, AND HOBBIES. THESE ARE THE THINGS YOU WANT TO ENJOY LIFE BUT CAN LIVE WITHOUT.

20% SAVINGS/DEBT: USE THE REMAINING 20% TO SAVE FOR THE FUTURE OR PAY OFF DEBT. THIS HELPS BUILD FINANCIAL STABILITY AND PREPARES YOU FOR EMERGENCIES OR LONG-TERM GOALS.

FOLLOWING THIS RULE CAN HELP CREATE BALANCE AND ENSURE YOU’RE PRIORITIZING BOTH YOUR PRESENT NEEDS AND YOUR FUTURE FINANCIAL WELL-BEING.